Google is worth a trillion dollars.

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How is it a company can be worth more than the GDP of several countries combined ?

Does this mean some people are just more competent ?

Comments (19)

 
Jan 17, 2020 - 9:31pm

papertiger:

Does this mean some people are just more competent ?

this post is plesantly ironic

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Funniest
Jan 17, 2020 - 10:03pm

in zimbabwe

Thank you for your interest in the 2020 Investment Banking Full-time Analyst Programme (London) at JPMorgan Chase. After a thorough review of your application, we regret to inform you that we are unable to move forward with your candidacy at this time.
 
Jan 18, 2020 - 11:46am

Market cap =/= GDP

They only happen to be the most common measurements for companies and countries, respectively. They do not equate to each other.

Pls go back to Econ 101

“The three most harmful addictions are heroin, carbohydrates, and a monthly salary.” - Nassim Taleb
 
Most Helpful
Jan 18, 2020 - 4:28pm

A more relevant measure would be company's market cap to a nation's net assets, not its GDP. A quick Google search (ha!) shows the US net worth in 2014 at $124 trillion while GDP was <$20 trillion. You can see that net assets are going to be far higher than GDP.

Nevertheless, Google is fantastically wealthy. It's truly remarkable. Your point is well taken. What's most remarkable to me is that Google is basically a complete failure as a company (it hardly has any successful product launches) yet its search engine absolutely prints money like nothing mankind has ever seen before. Its single successful product makes it worth $1 trillion. To add on to how remarkable it is, I'm not even convinced that online ads are all that effective, yet Google has created a trillion dollar company almost entirely through selling really low quality ads. It boggles the mind.

In fact, online ads my even produce a negative net return for Google's business customers: https://www.nber.org/papers/w20171.pdf

In other words, Google's core product that makes it rich probably doesn't even help Google's customers. It really is an awful, terrible company.

Array
 
Jan 23, 2020 - 2:20pm

Google is worth a trillion dollars because search queries = intent.

Want to know what features to put in a product you're building? Use search intent.

Want to know how a specific industry is likely to trend? Search intent.

It's crazy they have a monopoly on search...I'm excited to see how they are displaced when the time comes. Amazon has successfully carved away Google's previous monopoly on purchase intent as most searches for a product start on Amazon now...but what about the rest? Very curious!

 
Jan 28, 2020 - 1:47pm

Do you think it is more probable that disruption come from outside or from the big tech giants fighting each other?

If the latter, it is more scary imo. Not saying Google is good, but I am not sure Amazon is any better. Also, Google sets a precedent when it comes to how employees are treated. Amazon is the antithesis of that.

“The three most harmful addictions are heroin, carbohydrates, and a monthly salary.” - Nassim Taleb
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